Questions tagged [fed rate decision]

Tommaso Wed Jul 17 2024 | 5 answers 1294

With the Federal Reserve's rate decision looming, investors are understandably concerned about the potential impact on the volatile world of cryptocurrencies, particularly Bitcoin. The question remains: will Bitcoin's volatility persist post-decision? The answer is multifaceted. On one hand, the Fed's rate hike or cut could influence broader market sentiment, affecting investors' risk appetite and ultimately Bitcoin's price. On the other hand, Bitcoin's price is driven largely by its unique value proposition and network effects, which are often decoupled from traditional financial markets. Thus, while the Fed's decision may introduce some temporary volatility, Bitcoin's long-term trajectory is likely to be determined by its underlying fundamentals.